Keypublic sector workers are struggling in the housing market with the south west being one of the worst affected areas, a new survey has revealed.

Research from Halifax shows the average house price was unaffordable for all five key worker occupations in 70 per cent of towns across Britain in March 2007, up from 65 per cent last year.

In the south west the average house price was above the budget of key workers, such as nurses and firefighters, in all 34 towns surveyed.

In 2002, the average house price was out of the reach of key worker occupations in just 38 per cent of towns.

Tim Crawford, group economist at Halifax, said: "Housing affordability continues to deteriorate for key workers across Great Britain and it is now clearly a problem not confined to the south of England.

"Nurses face the most difficulties climbing onto the housing ladder but all key worker occupations are likely to struggle to purchase a house apart from Scotland.

"The Government's key worker schemes are providing some relief but given recent trends there would clearly be benefits from broadening their reach."